In each of the following cases, in the short run, determine whether the events cause a shift of a curve or a movement along a curve. Determine which curve is involved and the direction of the change.

a. As a result of an increase in the value of the dollar in relation to other currencies, American producers now pay less in dollar terms for foreign steel, a major commodity used in production.

b. An increase in the quantity of money by the Federal Reserve increases the quantity of money that people wish to lend, lowering interest rates.

c. Greater union activity leads to higher nominal wages.

d. A fall in the aggregate price level increases the purchasing power of households’ and firms’

money holdings. As a result, they borrow less and lend more.